HomeMy WebLinkAbout8.a. City Acquisition of 3205 143rd StreetAGENDA ITEM: City Acquisition of 3205 143 Street
AGENDA SECTION:
New Business
PREPARED BY: Kim Lindquist, Deputy Director
AGEN fl
a
A
ATTACHMENTS: Draft Resolution, Purchase Agreement,
Property Lease, Contract for Deed
APPROVED BY:
RECOMMENDED ACTION: Adopt Draft Resolution for City Acquisition of Pro erty
Located at 3205 143 Street.
ACTION:
City Council Meeting Date. March 1, 2005
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
BACKGROUND
On October 5, 2004 the Port Authority discussed purchase of several parcels in the
Downtown area, including the property at 3205 143 Street. The Port Authority directed
staff to continue investigating purchase of the property.
DISCUSSION
The City Council is being asked to pass a resolution purchasing the property at 3205
143 Street. The purchase is for $170,000 and an additional $20,000 for relocation
benefits. The purchase is structured as a contract for deed with the first payment of
$100,000 upon closing and the second payment due on June 30, 2006. The second
payment will include 8% interest. Staff is recommending the purchase come from
General Fund reserves In talking with the Finance Director, as the audit process is
completed it appears that 2004 reserves will meet the projected needs for 2005 as well
as this unbudgeted expenditure.
The initial discussions were that the Port Authority would purchase the property. In
talking with the City Attorney the public purpose for acquisition is clearer under the
general governmental powers of the City Council. Because the property is not located in
the Downtown TIF District, the property is not being acquired for redevelopment
purposes Rather, the property is being acquired due to its non conforming status as a
commercial property on a public institutional site Further, the property will be used in
the future for open space and potentially to allow signage or an appropriate gateway
feature announcing the Downtown area. This information is reflected in the attached
resolution.
There are three documents the Council must approve to accomplish the proposed
purchase. The first is the purchase agreement which lays out the cost of the property
and the timing of payments. The second is the lease agreement which explains the
responsibilities of the City and the Olsens during the time period of the contract for
deed. And the final item is the contract for deed.
RECOMMENDATION
Staff recommends approval of the draft resolution approving the purchase agreement,
lease agreement and contract for deed.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2005
A RESOLUTION APPROVING THE PURCHASE OF 3205 143' STREET WEST FOR
DOWNTOWN ROSEMOUNT REDEVELOPMENT
WHEREAS, the City Council of the City of Rosemount intends to purchase residential property
owned by Jeffrey A. Olsen and Claire M. Olsen located at 3205 143` Street West, Rosemount,
legally described as:
Lot 200, Block 27, Auditors Subdivision No. 1.
WHEREAS, the City has been discussing acquisition as part of the Downtown Redevelopment
process; and
WHEREAS, the property does not meet the blight test and therefore is not included in the
Downtown/Brockway TIF District; and
WHEREAS, the land use on the property as a commercial daycare is a non conforming use; and
WHEREAS, the property serves as a gateway to Rosemount's Downtown; and
WHEREAS, the City's purchase permits removal of a non conformity; and
WHEREAS, the City will use the property as open space and as part of the Downtown
redevelopment, and
WHEREAS, the City will purchase the property as contract for deed to permit the owner to use
the property until June, 2006; and
WHEREAS, the City will use general fund reserves to pay for the purchase of the property.
NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby
approves the purchase of residential property located at 3205 143` Street West, Rosemount,
subject to:
1. Execution of the Purchase Agreement by and between the City of Rosemount and Jeffrey
A. Olsen and Claire M. Olsen.
1 2. Execution of the Contract for Deed by and between the City of Rosemount and Jeffrey A.
Olsen and Claire M. Olsen.
3. Execution of the Lease Buy Back Agreement by and between the City of Rosemount and
Jeffrey A. Olsen and Claire M. Olsen.
ADOPTED this 1st day of March, 2005 by the City Council of the City of Rosemount.
William H Droste, Mayor
ATTEST:
Linda Jentink, City Clerk
Motion by:
Voted in favor:
Voted against:
Member absent:
Second by:
2.
RESOLUTION 2005-
PROPERTY LEASE
This is a Lease. It is a legal agreement between the Tenant and the Landlord to rent the
Property described below. The word Landlord as used in this Lease means Rosemount Port
Authority, a public body corporate and politic under the laws of the State of Minnesota, and the
Landlord's address is 2875 145 Street West, Rosemount, MN 55068. The word Tenant as used
in this Lease means Claire M. Olsen d/b /a T C Daycare and Tenant's address is 33205 143
Street, Rosemount, MN 55068.
This Lease is a legal contract that can be enforced in court against the Landlord or the
Tenant if either one of them does not comply with this Lease.
1. Description of Property. The address of the Property is 3205 143 Street West,
Rosemount, MN 55068.
2. Term of Lease. This Lease is for a term of one years from the day of
2005, at 12:00 o'clock, a.m. and ending June 30, 2006 at 12:00 a.m., unless sooner
terminated by written agreement of the parties or operation of law. Tenant may terminate
this lease upon 30 days notice.
3. Rent. There is no rent due under this Lease.
4. Security Deposit. The Tenant has given the Landlord no security deposit.
5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the
Property for the term of this Lease.
6. Use of Property. The Property must be used only as a daycare facility operated by
Tenant, and no other purpose. The Tenant may not use the Property for any unlawful
activity. In particular, Tenant agrees that (a) Tenant will not unlawfully allow controlled
substances in the Property; and (b) the property will not be used by the Tenant or others
acting under his or her control to manufacture, sell, give away, barter, deliver, exchange,
distribute, or possess a controlled substance in violation of any local, state, or federal law,
including Minn. Stat. Chapter 152.
7. Maintenance and Repair.
a. By Landlord. Landlord makes no representation that the Property is fit for use as
a daycare facility.
b. By Tenant. Tenant promises, at Tenant's expense, to make all repairs and
eliminate any violation of health and safety laws. Tenant shall comply with all
the sanitary laws affecting the cleanliness, occupancy and preservation of the
Property, except where the Landlord is required by law to comply with the
sanitary laws (see Minnesota Statute, Section 504.18).
CBR- 258725v1
RS230 -36
8. Alterations. Tenant must obtain Landlord's prior written consent to install any paneling,
flooring, or partitions to make alterations or to paint or wallpaper any portion of the
Property. Tenant must not change the heating, electrical, plumbing, ventilation or air
conditioning systems without the prior written consent of the Landlord.
9. Damage to the Property. If the Property is damaged or destroyed, Landlord may
terminate this Lease immediately and may decide not to rebuild or repair the Property, in
which case this lease is terminated and neither party has any further obligation to the
other.
10. Insurance. Tenant shall maintain a policy of renter's insurance on personal property at
their own expense. Tenant shall also maintain a policy of liability insurance in the
amount of not less than Tenant's present policy limits with respect to injury or death to a
single person, and said policy of insurance shall name Landlord as an additional insured.
Tenant shall indemnify and hold harmless Landlord from any claim or damage to person
or property arising out of activities by Tenants or Tenants' invitees on the Property.
11. Utilities. Tenant shall pay for all utilities provided to the Property during the term of this
Lease.
12. Right of Entry. Landlord and Landlord's agents may enter the Property at reasonable
hours to repair or inspect the Property and perform any work that Landlord decides is
necessary.
13. Assignment and Subletting. Tenant may not assign this Lease, lease the Property to
anyone else (sublet), sell this Lease or permit any other person to use the Property
without the prior written consent of the Landlord. If Tenant does so, Landlord may
terminate this Lease. Any assignment or sublease made without Landlord's written
consent will not be effective. Tenant must get Landlord's permission each time Tenant
wants to assign or sublet. Landlord's permission is legally effective only for that specific
assignment or sublease.
14. Surrender of Premises. Tenant shall move out of the Property upon termination of this
Lease in accordance with Section 2 hereof.
15. Default. If Tenant violates any term of this Lease, Landlord may terminate this Lease. If
Tenant does not move out. Landlord may bring an eviction action. If Tenant violates a
term of this Lease and Landlord does not terminate this Lease or evict Tenant, Landlord
may still terminate this Lease and evict Tenant for any other violation of this Lease. If
contraband or a controlled substance manufactured, distributed, or acquired in violation
of Minnesota law is seized in the Property or on the property on which the Property is
located incident to a lawful search or arrest, and if Tenant has no defense under
Minnesota Statutes 609.5317, Tenant shall have no further right to possession of the
Property, and Landlord may bring an eviction action against Tenant.
16. Heirs and Assigns. The terms of this Lease apply to the Tenant and Landlord and any
heirs, legal representatives, successors and assigns of Tenant or Landlord.
CBR- 258725v1
R5230 -36
DATED: 2005.
LANDLORD: TENANT:
Rosemount City Council
By
City Administrator Claire M. Olsen d/b /a T C Daycare
CBR- 258725v1
RS230 -36
Fab -14 -05 12:39 From Kennedy Graven
CONTRAC 1 1'vR DEED
Individual Seller
No delinquent taxes and uans(er entered; Certificate of Real
haute valet. Wed not required
Certificate of Reid Estate Value No
County Auditor
(Date)
by
Deputy
Dec
11-XIS CONTRACT FOR DEED (the "Comma, ,s made on the above date by
Jeffrey A Olen and Claire M Olstri, husband and wife
Seller rwhether one ur more), and
City of Rosemount a municipal corporation under the laws of the State of Minnesota
Purchaser (whether one or more)
+6123378310
([husk box if )omt tenancy).
Seller and Purchaser agree ro the following rermC
1. PROPERTY DESCRIPTION Seller hereby sells, and Purchaser hereby buys, teal property in flakns
County Minnesota, dacnbcd as follows
Lot 200, Elora 27, Auditors Subdivision No. 1
lasements of record that do not interfere with Purchaser's enjoyment of the Properly.
(b) Denver To Purchaser the abstract of ucle TO The Ptopcny without further ex cn$ron. to the extent required by the
pureha,e agreement (If any) between Seller and Purchaser.
T -259 P 002 /005 F -358
Form No 54 -M MiuneSota Uniform Conveyancing Blanks (200()
(reserved for recur ding dam)
together with all heredttamems and appurtenances belonging Theron (The "Property"). Unless otherwise specified, Seiler hereby
dcltvers posse: anon of the Property to Purchaser on the date Hereof.
Seller check applicable box:
fl The Seller [crashes that the Seller does not know of any wells on the described real property.
A well disclosure ardEcttc accomponlca tins dncutile,n.
him (tm Thar with the properry dc,cttbed m Ills instrument and I certify that the stain and number of wells on the
described teal property have not changed since ncc last previously Ctlod well disclosure cendicate
2. TITLE. Seller warrants that utie u, the Property is. on the date of this Contract. subjea only to the following c>coptiew,
(a) Crvenant conditions, resricuotu (without effects[ forfeiture provisions) and dectaraooaa, of record, if any;
Ib) Reservation of minerals or mineral non., by the State of Minnesota if any.
(c) Utility and drainage ea ements which do not interfere with present improvement:;
(d) Applicable laws, ordinance: and reguluuonc ARAN t:"
(c) The lien of real estate cues �d•ea.. -Il.. f, i .,_..1 rimy:" �vEfC Nth payable by Purchaser pursuant to
paragraph 6 of this Contract, and
(f) The following liens or encumbrances:
Easements oftccord that donor interfere with PurcheScr'S enjoyment of the Property.
3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Pun:haser's full performance of this Contract, Seller shall•
(n) Exccutr, acknowledge and dclrvcr m Purchaser a Warranty Decd, in recordable £ergm, conveying
inarkenhlc rate 10 the Property to Purchaser, subject only to the following exceptions
(1) Tho.e excepdans referred in in paragraph 2(4, (b). (e), (d). and (c) of th• Conuaa;
(n) Liens• encumbnnt.en adverse claur a or otter ntaten. which Purchaser has emoted. suffered or Remained to accrue
Zia- the the of this Comma, and
p The following hem or encumbrances:
Feb -14 -05 12:39 From Kennedy Graven
4. PURCHASE PRICE. Purchaser shall pay to Seller at
the sum of One Hundred Seventy Thovsund Dollars l WOW W
OS and tor the purchase pier. (me "Purchase Pnce•') for the Property, payable as follows.
5100,000.00 ua.,h at closing, the receipt of which is hereby acknowledge&
570,000 00 together with interest at the rate of eight percent per slum, compounded annually on June 30, 2006.
5. PREPAYMENT Unless otherwise provided in this Contract, Purchaser shall have the right to fully or parvally prepay thtx
Contract at any time without penalty. Any partial prepayment shall be applied lirst to payment of amounts then due under this
Contract. Including unpaid accrued Interest, and the balance shall be appliedtothe pnncipal insallments to be paid in the inverse
order of their maturity Partial p, epayrnem shall not postpone the duc date of the installments to be paid pursuant= this Cor 1ruet
or change thc amount of sueli mntdlmenL.
6, REAL ESTATE TAXES AND ASSESSMENTS. Real estate cues and titan Crota(- ep,xi.4- aMe6STeat which are due and
payable in the year in which this Contract a dated shall be paid as follows,
Prorated a of the date bareaf.
Special assessmentS hvied pinto the date of the Purchase Agreement between Sella and Purchaser will be paid by Seller and
Seller warrants that they have heat paid in full. Special assessments levied no or ads said date will be paid by Pun:baser
Purchaser dell pay, before penalty ,aceraec, all rtal esure racy and nmwnments of special assessments assessed against the
Properly which an due and payable m all subsequent yeah. Seller Marmots that thc real estate taxes and installments of special
assessments which were due and payable in the years ;centime the year in which this Contract L dated are paid in full If the
Property is subject to a recorded declaration providing for assessments to be levied against thc Property by any owners' assMaa-
non. Purchaser shall promptly pay, when duc. all assessments imposed by die owners association or other e ovemin g body as
required by the provisions of the declaration or other related documents.
7 PROPERTY INSURANCE.
(a) INSURED RISKS AND AMOUNTS Purchaser shall keep all buildings, impmvernents and fixtures now or later located
on or a part of the Property insured against loss by Ere. lightning and such other perils as ate Mehl/led= 2 standard "Mi-
nsk" endorsement, and against lass or damage by all other risks and hazards coveted by a standard extended coverage
insurance policy. including, without limitation. vandalism, malicious mschief, burglary. theft .red. if applicable, steam boil-
er explosion. Such insurance shall be in an amount no less than the full replacement cost of the buildings, improvements
and fixtwxs, widtoui deduction for physical depreciation. If any of the buildings unprovemcnts or Es= es are located in a
federally desrtmated flood prone area. and if flood insurance h available for that area Purchaser shat procure and main-
tain flood insurance in amounts reasonably sattsfaetory to Seller.
(b) OTHER TERMS. The insurance policy shall contain a loss payable clause in favor of Selitr which provides that Seller's
right to recover under the marines 41311 not be impam•J by any acts e omissions of Purchaser or Seller, and that Seller
shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so-called scandartl mort-
gage clause
re) NOTlCt OF DAMAGE_ In the event of damage to the Property by foe or other casualty, Purchaser sbadl promptly give
notice of such damage to Seller and the insurances company.
S. DAMAGE TO THE PROPERTY.
APPLICATION OF INSURANCE PROCEEDS If the Property is damaged by fun or other casualty, the insurance pro-
cods paid on account of such damage shall be applied repayment of the .amounts payable by Purchaser under this Contract
even if such amounts arc not then due an be paid, unless Purchaser makes a permitted election described in the next para-
graph Such amounts shall 1>e Cana applied to unpaid accrued interest and next to the installments to be paid as provided in
this Contract in ate tavern osier of their maturity. Such payment .shall not postpone the due due of the Installments to be
paid purivanr 10 this Contract or change the amount of such internment The balance of insurance proceeds, hf any, shall
be the property of Purchaser
(b) PURCHASER'S ELECTION TO REBUILD. ir Purchaser is not in default under this CannieI, or after curing any such
default. mat if the mortgagees m any prior mortgages and sellers in any pnor contracts for deed do not require otherwise.
Pwehaser may elect to have than portion Mauch insurance proceeds accuracy in repair, replace or restore the damaged
Pmpeny (the ^Repairs Deposited in escrow with a bank or ode insurance company quahfrcd to do business 111 the Slate
of Minnesota oh such other party as may be mutually agreeable to Seller and Purchaser. The election may only be made
by written intone l0 Seller within sixty days after the damage Occurs. Also. theelection will only be permitted it the plans
and specifications and contracts for the Repairs arc approved by Seller. which approval Stier shill not unreasonably with-
hold or delay. If such a permtcdedemon us trade by Purchaser, Seller and Purchaser shall jointly deport, when paid, such
insurance proceeds into such escrow, U such insurance proceeds are insufficient for the Repairs, Purchaser shall. before thc
commencement of the Repa deposit into such escrow sufficient additional money to lvsLrr the full payment for the
Rcpein, Even if the insurance proceeds are unasmlabl a nr are ins uffiC.cnt to pay the cost of the Repairs, Parrhascr .bail at
rill tunes Fr responsible to pay the full corn of the Repatn All escrowed funds stall be disbuncd by the ceemwte rat accor-
dance with generally accepted sound construction dishuncment procedures. The costs incurred or re be incurred on account
of such escrow shall be deposited by Punch v,er into au en net OW heGxe the commencement of the Repair,. Purchaser shall
complete the Repalra as soon as reasonably possible and in a good and wnrkmanhkc manner, and and in any event the
la)
C:onuaet for Dccd Form 5444 page 2
+6123379310 T -259 P 003/005 F-358
Feb -14 -05 12:38 From- Kennedy Graven +6123378310 T -259 P 004/005 F -358
Repairs shall be completed by Purchaser within ax year after dbc damage occurs 14 following the compierion of and pay
ment for the Repairs, theft lemmas any undvsbuned escrow funds. Ruch fund; shall be applied to payment of the amounts
payable by Purchaser under this Connect in accordance with paragraph 8(a) above.
(c) OWNERS' ASSOCIATION- If the Property is subject to a recorded dtdamunn, so long as the owners' association =an-
imus a master or bunker policy of 1stsurance against fire, extended coverage pails and such other bazatds and m such
amount as are required by this Contras. then: (t) Purchaser's obiigahon in the Contract to maintain hazard insurance cov-
erage on tht Pmperty k sansfiet (n) the provisions of paragraph 8(a) of this Contract regarding apphedion of insurance
proceeds shall be superseded by the provisions of the declaration or other related documents: and (iii) in the event of u dis-
mhution of insurance proceeds in lieu Of mstomuon or repair following an insured casualty loss to the Property, any such
proceeds payable to Purchaser are hereby assigned and shall he paid to Scher for application to the sum secured by this
Contract, with the caress. tr any, paid m PurtLaser-
9 INJURY OR DAMAGE OCCURRING ON THE PROPERTY
(a) LIABILITY. Seller shall be free trot Lability and claims Tor damages by mason of mjutcs oceurnng on or after the date
of this Contact to any person or persons or property while on or about the Propert)*Purehascr shall defend and indemni-
ty Seller from all liability. lose cost and obligations, including reasonable attorneys' fees, On acCOurn of or aoNng our of
any such mutes. However. Purchaser shall have no Lability or obhganon to Seller for such injuries which are caused by
the negligence or intentional wrongful acts or omissions of Seller
fb) LIABILITY INSURANCE-- P„ ichaset shall, at purchaser's own event:, procure and maintain )'abdny inStunnee against
clams for bodily injury, death and property damage oceumng on of about the Property in amounts reasonably oatiSfamo
ry to Seller and nanung Seller as an additional insured.
10. INSURANCE GENERALLY. The insurance which Purchaser is required to procure and marital punuaet 10 paragraphs 7 and
9 of this Contract shall be issued by an insu arts enmpany or eampanim licensed to do business m the State of Minnesota and
acceptable to Seller The insurance shall be maintained by Purchaser au all 6me; while any amount remains unpaid under this
Q,nlmeL The insurance policies shall provide far not Icsa than ten days' written notice ho Seller before cancellation, non- ivicw-
al. ttrmuafdo or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance
polity 01 policies.
11. CONDEMNATION. If all Or any part of the Prtupeny is taken in condemnation proceedings instituted under power of eminent
domain or is conveyed to lieu thereof under threat of condemnation, die money paid pursuant to such condemnation or con-
veyance in btu i hocof shall be applied to payment of she amounts payable by Purchaser under this COntmc4 even if such
amounb are not then due to he paid Such amounts shall be applied in the same manner as a prepayment as provided in pan
graph 5 of this Contract. Such payments :hall not postpone the disc date of the instalments to be paid pursuant to this Contract
or change the amount of such installments The balance- if any, shall be the property Of Purchaser,
12. WASTE, REPAIR AND LIENS. Purchaser shall nm remove or demolish any buildings, improvements or fixtures now or later
located an or a pan of the Property, nor shall Purchaser commit or allow waste of the Property. Purchaser shall maintain the
Property in good condition and fepar- Purchaser !hall not create Orpermn W aatme hens oradvet a claims against the Pmperty
which constitute a Loh nr claim against Sakes interest in the Property Purchaser shall pay to Seller all amounts, costs and
expenses, tnr-ICding ma.nnahlc attorneys' fees Intoned by Sells to remove any such hens or adverse clams.
13. COMPLIANCE WITIL LAWS. hxcept for man eel which Seller has created, suffered or ',ermined m exist prior to the date of this
Contract Purchaser shall comply or cause compliance with all laws and regulations of any governmental authority which affeel
the nup..ny or the manner of using or operating the sane, and with all restrictive covenants, if any. affecting tide to the Property
or the Ube thereof.
14- RECORDING OF CONTRACT; DEED TAX Purchaser shall at Purchaser's expense, record this Contract m the office of the
cohmty recorder or registrar of tides m the county in which the Property is located within four (4) months after the dam bur or.
Purchaser shall pay any penalty unposed under Minnesota Statutes Section 5 07235 for failure to timely mot the Contract
Seller snail, upon Pare aser s full performance of this Contract pay the deco tax due upon the recording of the deed to be deliv-
ered by Shccr-
15 NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interest in the Property, the assigning patty shall prompt-
ly furnish a copy of such assignment to the note- assigning party
16. PROTECTION OF INIERFSTS. If Purchaser fails to pay any sum of money required under the terms of the Conran or falls
to perform any at the Purchasers obligations as eel forth in this Contract, Seder may at Seller's option, pay the tatne ar Caen
Mc same in be performed, or both, and the amounts so pad by Seller ad the cost of such performance shall be payable at once,
w Nth interest at the raze stated a paragraph 4 of this Contract as an additional amount due Seller under this Contract. If there now
exists, or if Seller hereafter creates. suffers or permits to accrue. any mortgage, contract for decd. Len or encumbrance against
the Property which k not herein expressly assumed by Purchaser. and provided Purchaser is not in default under dire Contract.
Seller shall umcly pay all amounts due thereon. and if Setter fills to do so. Purchaser may, at Purchaser's npuon, pay any such
detinqucnt annum or Lake any actions reasonably necessary to cum defaults thereunder and deduct the amounts so paid togeth-
er with interest at the rate provided in this Contract from dmpaymments JCxl COl1Lng due underthus Contract
17 DEFAULTS AND REMEDIES- The time of performance by Purchaser of the terms of this Comract i+ an essential part of this
Contract If Purchaser tails to timely perform any tam of this Contract Seller may, at Seller's option. elect to declare (NS
Contract cancelled and temvnated by notice to Purchase. to accordance with applicable law or cicct any other remedy available
at law or in equity- If Seller elects to terminate this Contract all tight, ate- and interest acquired under this Contract by Purchaser
shall then cease and terminate, and all improvements made upon the Property and alt payments made by Purchaser putteant to
this Contract (Including escrow payments. if any) shall belong to Seller as liquidated damages for breach of this Contract Neither
the awhvon of tic time for payment of any sum of money to be paid hereunder nor any waiver by Seller of Sellers rights to
declare this Contract fnrfGtcd by reason of any breach shall in any manner affect Seller's right to cancel this Contact because
of defaults subsequently occurring, and no extrssinn of time shall he valid unless agreed to in writing After service of nonce of
default and Callum to cum such default wuhn the period allowed by law, Purchaser shalt upon demand surrender pocser iron of
the Property to Seller. bat Purchaser shall he emitted to possession of the Pmperty until the aspiration of such ported Failm a by
Seller to exercise one or mom remedies available under this pamraph 17 shall not constitute a waiver of the right to eserosx
such remedy or remedies thereafter,
Contract for Deed Form S4 -M pace 3.
*exce t
t r the
me enant
is in
possession
of the
property.
Feb -14 -05 12:40 From Kennedy Graven +6123379310 T -259 P 005/005 F -358
IS BINDING EFFe T the tcrma of this Contract shall run with the land and hind the parties hereto and the successors in In crest.
19. HEADINGS. kleadiogl of the paragraphs of this Contract are fur convenience only and do not define, limit or construe the con-
tent. of .uch paragraphs.
?0. ADDf IONAL TERMS: Check here if ao Addendum 10 Contra for Decd containing additional terms and conditions is
anaehtd hereto.
SELLER ER PURCHASER CITY OF ROSEMOUNT
Jeffrey A Olsen
Claire M Olsen
STATE OF MINNESOTA
COUNTY OF
This instrument was acknowledged before me on v.
by Witham H flimsy ind lame. Verhrtm^c the MMOr and City Administrator ofthr Sits• of Rntrmnunr a Minnesota
municipal corporation on behalf of the municipal corporation.
N(ILARIAL S C mP OR SEAL (OR OTHER TITLE OR RANK)
STATE OF MINNESOTA
COUNTY OF
Dili ingmflfcnt W15 acknowledged belore inc DO
by Irffrey A Olsen and Claire M Olsen husband and wife
NOTARIAL STAMP OR SEAL (OK O VUkiR 11TLE OR RANK)
THIS INSI RtJMF N I WAS DRAFT h1) BY: (NAME AND ADrw
Kennedy Graven, Chartered
470 U S. Bank Plana
20(1 South Sixth Street
MinnevpobS, MN 55402
RS230 -36
Mayor
Contract for Deed Fenn 54 -M page 4,
City Manager
SIGNATURE OFNGCARY PUBLIC OR OTI1ER OFFICIAI.
SIGNATURE OF NOTARY PUBLIC OR 011 IFR OFFI(1Al
Cheek here if all or part of the land ,e mnicreied (Taman). Q
Tat Statements for the real property described in ibis insuv-
men( should be sent lo, (include name and addrt j
City of Rosemount
/2S7S 14511 Stmt West
Rosemount, MN 5506a
FAILURE TO RECORD THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES PRIORITY
OVER PURCHASER'S INTEREST I1N THE PROPERTY.
1. PARTIES. This Purchase Agreement is made this day of
2005 by and between Jeffrey A. Olsen and Claire M Olsen, husband and wife "Seller
and Rosemount Port Authority, a public body corporate and politic under the laws of the
State of Minnesota "Buyer
2. SALE OF PROPERTY. Seller is the owner of that certain real estate (the
"Property located at 3205 143` Street West in the City of Rosemount, Dakota County,
Minnesota and legally described as follows:
Lot 200, Block 27, Auditors Subdivision No. 1.
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein
contained. Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants
to Buyer the exclusive right to purchase the Property and all improvements thereon,
together with all appurtenances, including, but not limited to, plant, shrubs, trees, and
grass.
4. PERSONAL PROPERTY INCLUDED IN SALE: There are no items of
personal property or fixtures included in the sale.
5. PURCHASE PRICE AND TERMS:
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A. PURCHASE PRICE: The total Purchase Price for the real estate
included in this sale is One Hundred Seventy Thousand and No /100ths
Dollars ($170,000.00).
B. TERMS:.
(1): AMOUNT DUE SELLER: Buyer agrees to pay by check on the
Closing Date One Hundred Thousand and no /100 Dollars
($100,000), according to the terms of this Purchase Agreement.
(2): CONTRACT FOR DEED: The balance of $70,000 shall be
payable according to the terms and conditions of a Contract for
Deed payable in full on June 30, 2006 together with interest at the
rate of eight percent compounded annually. The form of the
Contract for Deed is attached hereto as Exhibit A.
(3):
PURCHASE AGREEMENT
ASSUMPTION OF EXISTING INDEBTEDNESS: The Buyer, in
its discretion and in partial payment of the purchase price, may, to
the extent assumable, assume or take title subject to any existing
indebtedness encumbering the Property, in which case the cash to
be paid at the time of closing shall be reduced by the then
remaining indebtedness.
(4): DEED /MARKETABLE TITLE: Subject to performance of the
terms of the Contract for Deed by Buyer, Seller agrees to execute
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and deliver a Warranty Deed conveying marketable title to the
Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal
regulations.
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(5):
b. Reservation of minerals or mineral rights to the State of
Minnesota, if any.
c. Public utility and drainage easements of record.
d. Liens, encumbrances, adverse claims or other matters that
Buyers have created, suffered or permitted to accrue after the
date of the Contract for Deed.
DOCUMENTS TO BE DELIVERED AT CLOSING BY
SELLER. In addition to the Contract for Deed required at
paragraph 5B(2) above, Seller shall deliver to the Buyer:
a. Standard form Affidavit of Seller.
b. Abstract of title, if available.
c. A "bring- down" certificate, certifying that all of the
warranties made by Sellers in this Purchase Agreement
remain true as of the date of closing.
d. Certificate that Seller is not a foreign national.
e. Well disclosure certificate, if required, or, if there is no well
on the Subject Property, the Warranty Deed given pursuant to
paragraph 4 above must include the following statement:
"The Seller certifies that the seller does not know of any
wells on the described real property."
Such other documents as may be reasonably required by
Buyer's title examiner or title insurance company.
6. CONTINGENCIES. Buyer's obligation to buy is contingent upon the
following:
a. Buyer's determination of marketable title pursuant to paragraph 11 of this
Agreement, and
b. Buyer's determination, in its sole discretion, that the results of the
environmental investigation under paragraph 8 of this Agreement are
satisfactory to Buyer.
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Buyer shall have until date of closing to remove the foregoing contingencies. The
contingencies are solely for the benefit of Buyer and may be waived by Buyer. If the
contingencies are duly satisfied or waived, then the Buyer and Seller shall proceed to
close the transaction as contemplated herein. If, however, one or more contingencies is
not satisfied, or is not satisfied on time, and is not waived, this Purchase Agreement shall
thereupon be void, and Buyer and Seller shall execute and deliver to each other the
termination of this purchase agreement As a contingent purchase agreement, the
termination of this agreement is not required pursuant to Minnesota Statutes, Section
559.21, et
7. CLOSING DATE. The closing of the sale of the Property shall take place on or
before 2005. The closing shall take place at Rosemount City Hall
2875 145 Street West, Rosemount, Minnesota or a location mutually agreed upon by the
parties.
8. ENVIRONMENTAL INSPECTION. Buyer and its agents shall have the right
to enter upon the Property after the date of this purchase agreement for the purpose of
inspecting the Property and conducting such environmental examination and tests as
Buyer deems necessary. Buyer agrees to indemnify the Seller against any liens, claims,
losses, or damage occasioned by Buyer's exercise of its right to enter and work upon the
Property. Buyer agrees to provide Seller with a copy of any report prepared as a result of
such examination and tests.
9. REAL ESTATE TAXES.
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A. Seller will pay at or prior to closing all real estate taxes due and payable in
2004 and prior years on the Property and real estate taxes payable in 2005
prorated to date of closing. If the amount of real estate taxes due and
payable in 2005 is not yet available from Dakota County, the amount
prorated shall be based on the amount of 2004 real estate taxes.
B. Buyer shall be responsible for its prorated share of real estate taxes due
and payable in 2005 and all real estate taxes due and payable thereafter on
the Property.
10. SPECIAL ASSESSMENTS.
A. Seller shall pay at or prior to closing the balance of all special assessments
levied prior to the date of this Purchase Agreement, including assessments
certified for payment with 2005 real estate taxes.
B. Buyer shall assume all special assessments levied on or after the date of
this Purchase Agreement, except that Seller shall at all times be
responsible to pay special assessment, if any, for delinquent sewer or
water bills, removal of diseased trees, snow removal, or other current
services provided to the Property by the assessing authority while the
Seller is in possession of the Property.
C. Sellers shall pay any deferred real estate taxes or special assessments,
payment of which is required as a result of the closing of this sale.
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11. MARKETABILITY OF TITLE. The Sellers, within a reasonable time after
acceptance of this Purchase Agreement, shall furnish to Buyer an abstract of title or
registered property abstract, certified to date to include proper searches covering
bankruptcies, state and federal judgment and liens and levied and pending special
assessments. Buyer shall have ten (10) business days after receipt of the abstract to examine
the same and to deliver written objections to title, if any, to Sellers. Sellers shall have until
the Closing Date (or such later date as the parties may agree upon) to make title marketable,
at the Seller's cost. In the event that title to the Property cannot be made marketable or is
not made marketable by the Sellers by the Closing Date, then, at the option of the Buyer:
this Purchase Agreement shall be null and N -oid; neither part shall be liable for damages
hereunder to the other; and Buyer and Sellers agree to sign a cancellation of this Purchase
Agreement. Buyer agrees to accept an owner's title policy in the full amount of the
purchase price in lieu of an abstract of title if the property is subject to a master abstract or if
no abstract of title is in Seller's possession or control. If Buyer is to receive an owner's title
policy, the title examination period will commence upon Buyer's receipt of a current title
insurance commitment.
12. CLOSING COSTS AND RELATED ITEMS. The Sellers shall be responsible
for the following costs: (a) recording fees and conservation fees for all instruments required
to establish marketable title in Sellers. Buyer shall be responsible for the payment of the
following costs: (1) recording fees required to be paid in connection with the warranty deed
to be given by Sellers; (2) closing fee, if any; (3) deed transfer taxes and conservation fees
required to be paid in connection with the warranty deed to be given by Sellers; (4) the cost
of the registered property abstract or abstract or, if a title policy is obtained, the tract check
and name search fees for the commitment of title insurance; (5) the title insurance premium
and service charge for the commitment of title insurance, if the title policy is being provided.
Each party shall be responsible for its own attorneys' fees and costs.
13. POSSESSION. Buyer shall allow Sellers to occupy the Property through June 30,
2006 pursuant to the terms of the Lease Agreement attached hereto as Exhibit B. Seller
shall deliver to Buyer possession of the Property on or before June 30, 2006.
14. REMOVAL OF HAZARDOUS MATERIAL. Seller, prior to vacation of the
Property, shall remove all substances not a part of the building structure that, under state
or federal law, must be disposed of at an approved disposal facility. This includes, but is
not limited to, used oil, paints, solvents, fertilizers, poisons, and the like.
15. DAMAGES TO REAL PROPERTY. If the Property is damaged prior to closing,
Buyer may rescind this Purchase Agreement by notice to Seller within twenty -one (21) days
after Seller notifies Buyer of such damage, during which 21 -day period Buyer may inspect
the real property.
16. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM Sellers
have no knowledge as to the existence, location, or status of any sewage treatment system(s)
on or serving the Property.
17. CONDITION OF SUBSOIL AND GROUND WATER. Seller hereby warrants
to Buyer that during the time the Seller has owned the Property there have been no acts or
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occurrences upon the Property of which Seller had knowledge that have caused or could
cause impurities in the subsoil or ground water of the Property or other adjacent properties.
This warranty shall survive the closing of this transaction.
Seller agrees to indemnify and hold harmless Buyer from any and all claims, causes of
action, damages, losses, or costs (including reasonable attorney's fees) relating to impurities
in the subsoil or groundwater of the Property or other adjacent properties that arise from or
are caused by acts or occurrences upon the Property that: 1) occurred prior to Buyer taking
possession of the same, and 2) were caused by Seller or were known by Seller. Seller's
agreement to indemnify Buyer shall not merge into the deed and shall survive the closing of
this transaction.
18. WELL DISCLOSURE.
Sellers have no knowledge as to the existence, location, or status of any well(s) on or
serving the Property; or
A Well Disclosure Statement accompanies this Purchase Agreement.
19. SELLER'S WARRANTIES. Seller warrants that buildings are entirely within the
boundary lines of the property. Seller warrants that there is a right of access to the real
property from a public right -of -way. Seller warrants that there has been no labor or material
furnished to the property for which payment has not been made Seller warrants that there
are no present violations of any restrictions relating to the use or improvement of the
Property. These warranties shall survive the closing of this transaction. Buyer shall be
responsible for the demolition and removal of any buildings or improvements, including any
well(s) or sewage treatment systems located on the Property. Except as represented herein
Seller makes no representations as to the soundness of the structure or its suitability as a
dwelling Prior to closing Buyer will notify Seller of any breach known to Buyer and Seller
will be given a reasonable opportunity to remedy the breach.
20. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations
and warranties contained in this Purchase Agreement shall not be merged into any
instruments or conveyance delivered at Closing, and the parties shall be bound accordingly;
provided, however, that any claim by Buyer for a breach of any representation or warranty
made herein must be asserted by a lawsuit commenced within three (3) years of the date of
closing or otherwise be forever barred.
21. RELOCATION BENEFITS. Seller has agreed to accept payment of $20,000
for all relocation benefits upon vacation of the Property.
22. NO BROKER INVOLVED. The Sellers and Buyer represent and warrant to
each other that there is no broker involved in this transaction with whom it has negotiated
or to whom it has agreed to pay a broker commission or finder's fee in connection with
negotiations for the sale of the Property.
23. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement
constitutes the entire agreement between the parties, and no other agreement prior to this
Purchase Agreement or contemporaneous herewith shall be effective except as expressly set
forth or incorporated herein. Any purported amendment shall not be effective unless it shall
be set forth in writing and executed by both parties or their respective successors or assigns.
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24. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding
upon and inure to the benefit of the parties and their respective heirs, executors,
administrators, successors and assigns. Buyer shall not assign its rights and interest
hereunder without notice to Seller.
25. NOTICE. Any notice, demand, request or other communication which may or shall
be given or served by the parties shall be deemed to have been given or served on the date
the same is deposited in the United States Mail, registered or certified, postage prepaid and
addressed as follows:
26. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically
enforced by the parties, provided that any action for specific enforcement is brought within
six months after the date of the alleged breach. This paragraph is not intended to create an
exclusive remedy for breach of this agreement, the parties reserve all other remedies
available at law or in equity.
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a. If to Seller. Jeffery A Olsen and Claire M Olsen
3205 143' Street
Rosemount, MN 55068
b. If to Buyer: City of Rosemount
ATTN: Kim Lindquist
2875 145 Street West
Rosemount, MN 55068 -4941
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IN WITNESS WHEREOF, the parties have executed this agreement as of the date
written above
This Document drafted by:
Kennedy Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
SELLER
Jeffrey A. Olsen
Claire M. Olsen
BUYER
ROSEMOUNT CITY COUNCIL
By
Its Mayor
By
Its City Clerk
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EXHIBIT A
Contract for Deed